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Connecting Cars: The Technology RoadmapFebruary 2013 | Version 2.0


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GSMA CONNECTED LIVING PROGRAMME: MAUTOMOTIVE Connecting Cars: The Technology Roadmap 1

February 2013 | Version 2.0

Drivers and their passengers are increasingly seeking

in-vehicle mobile connectivity to make travelling by

car a saer, aster and richer experience. To meet

this demand, mobile operators and automakers

need to collaborate. In particular, mobile operators

need to deploy network technologies that support

widespread, high-bandwidth connectivity and enable

remote management o the SIM card.

Executive SummaryThe mobile industry is developing anembedded SIM, which can enable a swap

between operators, without any need to havephysical access to the mobile device. Thestandardisation of the remote management ofSIMs is scheduled to be completed in 2013.

Mobile networks are also evolving rapidly asoperators deploy new broadband technologies,such as HSPA+ (High Speed Packet Accessplus) and LTE (Long-Term Evolution).However, it is quite difcult to predict howLTE, in particular, will be deployed in any

specic geography given that: Network evolution is driven by thecommercial decisions of individual mobileoperators, based upon the needs of theircumulative customer base LTE requires additional spectrum whichwill either need to be licensed, or for someoperators, be re-farmed from existingmobile networks Spectrum is licensed at a national level.

The rapid evolution of mobile technology,such as smartphones, contrasts with

the product development cycles in theautomotive industry, which generally takesthree to ve years to develop new vehicles,which then have a typical lifespan of sevento ten years. The long lifecycles of vehiclesmean it is necessary to: Create durable connectivity solutions,

which require few hardware updates andsupport over-the-air software updates forsystems and services

Create interoperable solutions, which canmove across brands and models, as wellas provide economies of scale whereverpossible (even across automakers) Manage connectivity in a exible mannerthat can accommodate potential changesin user services during the long lifecycleof the vehicle. Automakers are seekingconnectivity solutions that can adapt to awide range of use cases, such as a changeof business model, a change of mobileoperator and a change in the ownership

of the vehicleAs they seek to meet these requirements,automakers have several options to connecta vehicle: Embedded devices, tetheredsolutions and integrated solutions (usinghandsets).1 These three connectivity solutionsare not mutually exclusive. A tandemapproach is frequently used to separate theallocation of costs to the beneciary (i.e. theautomaker or the driver) or to provide anoption for technology upgrades for newer-generation or higher bandwidth services. Thisportfolio of solutions is likely to continue toco-exist in the future.

Embedded solutions need to be able toaccess networks with the bandwidth andcoverage characteristics necessary to supportthe envisioned services, whilst also being asfuture-proof as possible to handle networkevolutions. There is a risk, for example,that 2G networks in some regions may beswitched off within the lifecycle of vehiclescurrently under development. While modulecosts will continue to fall, the rate of decline

in the cost of LTE automotive-grade modules,in particular, will depend upon how fast thetechnology gains economies of scale.

For embedded solutions, many automakersare looking to bring down the cost of dataconnectivity (both domestic and roaming) toa level where services with a moderate datarequirement, such as remote diagnostics,trafc information and connectednavigation, can be provided through anembedded SIM with a single upfrontpayment for the lifetime of the car.

Further areas or potential cross-industrycooperation include: Advancing enablers, such as remoteprovisioning, billing, roaming, security Operational improvements (such asimproved service delivery by different

connectivity methods (tetheringand smart phone integration), eCalldeployment dening commonrequirements for telematics services andoptimising data usage Exploring the opportunities for new

business developments, including jointapplication programming interfaces(APIs) and how to create and fostera scalable, viable and user-friendlyapplication ecosystem.

1

Embedded: Both the connectivity and intelligence is built directly into the vehicle.

Tethered: Connectivity is provided through external modems, while the

intelligence remains embedded in the vehicle.Integrated: Connectivity is based upon integration between the vehicle and theowners handset, in which all connectivity and intelligence remain on the phone.


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Table o ContentsIntroduction ...........................................................................4

Development challenges or cross-industry connected services 5

Cellular Networs Capabilities .............................................6

The principles underpinning mobile networs 6

The characteristics o cellular network technology 6

What are the key cellular network technologies? 7

Why is spectrum so important? 8

What does the uture hold? 9

The mobile industry is in constant and rapid evolution 9

Network evolution is difcult to predict 9

What could 2020 hold or network evolution in terms o regional coverage? 10

Service awareness and Quality o Service what is possible on mobile networks? 12

What does the SIM oer? 13

Next steps or mobile operators 16

Automaers Connectivity Requirements ............................17

The general automotive industry context 17

Examples o upcoming connectivity regulations impacting the automotive sector 18

Considerations or driver distraction 20

What are the connectivity options or automaers? 21

Dealing with the trade-os o the dierent connectivity choices 25

The obstacles to successul tethering 26

Network evolution considerations or connected car services 27

Automaers business models or telematics 28

The management o connectivity-related service costs 28

Choosing the right automotive module? 28

Criteria aecting automotive-grade module costs 29

Expected price evolutions or modules 29

The automotive use cases or provisioning and connectivity as defned byautomaers) 32

The primary open areas related to connectivity use cases & enablers 37

Requirements related to specifc services 37

The general status o telematics and inotainment services today 37

What are automaker technology requirements or specifc services? 39

How telematics and inotainment services are evolving 41

What are the Next Steps? ....................................................44

Preace 44

What are the frst results rom this cooperation? 44

Where could cross-industry co-operation continue to be benefcial? 45

Priority areas or cooperation between operators and automaers 45

Who should be involved in these cross-industry activities? 46

Annex ...................................................................................47

Glossary 47

Cellular Networ Technology: Additional Details 49

Primary operator principles 49

Network characteristics 52

Why is spectrum so important? 53

Network Generation: Details 55

Regional deployment details 57

Regional Deployment Plans or LTE 58


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Index o FiguresFigure 1: Automaker and Operator Interaction to Foster Telematics and Infotainment Services 4

Figure 2: Problem Statement between Automakers and Mobile Operators 5

Figure 3: Typical Mobile Technology Migrat ion Scenario 7

Figure 4: Summary of the Characteristics of Different Network Technologies Based on EvolvedGSM Core Networks 8

Figure 5: LTE Spectrum Landscape 8

Figure 6: 4G LTE Spectrum Solutions as a % of Global LTE Connections 9

Figure 7: Ericssons Coverage Estimates 10

Figure 8: 2G Connections as a % of Regional Connections 10

Figure 9: Network Technologies as a % of Regional Connections 11

Figure 10: Ericssons Forecasts for Mobile Net work Coverage in Asia 11

Figure 11: The Linear SIM Life Cycle Model of Today 13

Figure 12: Outcome-Based SIM Life Cycle Model with Repeat Provisioning 13

Figure 13: SIM Provisioning Use Cases 14

Figure 14: Remote Provisioned SIM: Elements 15

Figure 15: The Elements Involved in Remote SIM Provisioning 16

Figure 16: Basic Automotive Industrial Requirements 17

Figure 17: Differences in the Automotive and Operator Industrial Lifecycles 17

Figure 18: eCall Standardisation Process 18

Figure 19: Regulatory Framework for eCall 19

Figure 20: Comparing Different Types of Car Connectivity 20

Figure 21: Different Means to Enable Car Connectivity 21

Figure 22: Strengths, Weaknesses, Opportunities and Threats for Embedded Connectivity Solutions 22

Figure 23: Strengths, Weaknesses, Opportunities and Threats for Tethered Connectivity Solutions(embedded modem with intelligence in the car) 23

Figure 24: Strengths, Weaknesses, Opportunities and Threats for Tethered Connectivity Solutions(external modem and intelligence in the car) 24

Figure 25: Strengths, Weaknesses, Opportunities and Threats for Smartphone Integration ConnectivitySolutions (in which only the HMI runs on the car, everything else is on the phone) 25

Figure 26: Spectrum Availability for Connected Car Services 26

Figure 27: Global Mobile Markets Maturity 27

Figure 28: Automotive Considerations in Managing Cost of Data-Related Services 28

Figure 29: Celluar Module Core Technology Market Prices (in US$) 29

Figure 30: Automaker Use Cases for Connectivity 33

Figure 31: Important Role of Enablers in Supporting Business Models for Telematics andInfotainment Services 32

Figure 32: Types Of Billing Desired by Automakers 35

Figure 33: Business Models Enabled by Split Billing and Charging Capabilities 36

Figure 34: Primary Telematics and Infotainment Services 37

Figure 35: Importance of Connectivity Criteria Per Service 38

Figure 36: Primary Importance of Technology Criteria for Telematics and Infotainment Services 39

Figure 37: Classication of Telematics and Infotainment Services by Bandwidth andLatency Requirements 40

Figure 38: Machina Researchs Automotive Forecast for Global M2M Connections 41

Figure 39: Forecast for Global Wireless Trafc Generated by Embedded Mobility by Application 42

Figure 40: Breadth of Potential Joint Cooperation Areas 45

Figure 41: Principle Means to Improve the Telematics and Infotainment Services through Cross-Industry Action 46

Figure 42: Network Technologies as a% of Regional Connections 57


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This white paper analyses the complex dynamics

acing the mobile industry and automakers in the

development and deployment o telematics and

inotainment systems or passenger vehicles.

IntroductionIt outlines key industry characteristics,available resources for service deploymentand the requirements for these services,

both with regards to the current contextas well as looking into the future. Thiswhitepaper also explores the existing

barriers and opportunities relat ing tothe wider deployment of telematics andinfotainment services, through improvedcooperation between automakers andmobile network operators (MNOs).

The scope for this whitepaper is based

on the activities of the GSMA ConnectedCar Forum where global operators andautomakers have met since June 2011 tocooperate to address mutual challenges.Participants in the forum include: Operators: AT&T, Bell Canada, China

Unicom, KDDI, KPN, KT, NTT Docomo,Orange, Telecom Italia, Softbank,Telefonica, Telenor, Telstra, Turkcell,Verizon, Vodafone

Automakers: Audi, BMW, Chrysler, Fiat,Ford, GM, Honda, Hyundai, Jaguar LandRover, Mazda, Nissan, Peugeot, Renault,

Subaru, Toyota, Volvo, VW.This white paper is aimed at: Product planning executives, telematics,innovation and technical experts from

automakers

Business development executives,embedded mobile specialists, andtechnical experts from mobile operators.

This whitepaper is also helpful for othervalue-chain actors, playing intermediaryroles between mobile operators andautomakers in the development of theseservices. Finally, this whitepaper is relevantto policy and regulatory personnel wishingto understand the challenges facing thesetwo different industries in the deployment ofconnected car services.

The document covers three key areas: Cellular network technology: Thefundamental functionality of cellularnetworks, the current deployment statusof technologies and the outlook fornetwork evolution Connectivity in the automotive industry:An overview of the automotive industrysapproach to connected services, thetechnological requirements for these servicesand the outlook for service development Identication of areas for cross-industrycooperation between mobile operatorsand automakers that would supportthe deployment of telematics andinfotainment services.

This whitepapers underlying premise is thatonly through cross-industry collaboration

between automakers and mobile operatorswill it be possible to remove barriers tothe safe delivery of connected servicesand applications in cars, as increasinglyrequested by drivers (see Figure 1).

Automaers:Development otelematics andinotainment

services

Increased utilisation

o telematics andinotainment

Networ

operators:

Connectivityand value-added

services

Figure 1: Automaker and Operator Interaction toFoster Telematics and Infotainment ServicesSource: GSMA


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Development challenges or cross-industry connected services

Figure 2 outlines the cooperation challengesbetween automakers and mobile operators:

Addressing the problem statement outlinedin Figure 2 requires a meeting point between: mobile network technology and operatorservices

the requirements of the automotive industry the end consumer.Arriving at this meeting point will require

both industries to respond to the basicdifferences in their industrial structures,to overcome the existing service deliverychallenges, and nally to meet thecontinually-evolving market demands.

Figure 2: Problem Statement between Automakers and Mobile OperatorsSource: GSMA

Historic cooperation difculties across operators and automaers: Early telematics services oten resulted in misunderstandings between MNOs and automakers

Regulatory changes (in the EU) have slowed development in recent years.

Maret structure: Market dominated by relatively ew automakers wanting global solutions Fragmented market or services and devices Ater-market expected to grow signicantly in near uture Closed ecosystem.Service delivery challenges: Ubiquitous coverage is required or most telematics services

Services are oten not seamless, given ragmented connectivity approaches Driver distraction concerns impose specic, unique obligations on services or deployment Current business models have mostly been unable to directly cover the costs o providing services Security & privacy issues have a high prole as deployment o connected cars draws the attention o hackers Fear o roaming costs have reduced the utilisation o telematics services (switched o to avoid risks inborder areas).Maret Evolution: Market demands are evolving, as more data-intensive services are set to be widely-deployed, requiring new

technologies, business models and cooperation MNOs will need to meet these evolving requirements in order to maximise opportunities and become activeplayers in the value chain (beyond connectivity).


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This chapter reviews the basic characteristics o mobile

network technologies and SIM cards, some o the key

actors aecting their current deployment status, their

uture deployment and evolution. It seeks to provide

general technical inormation on key issues acing

the mobile industry, as a starting point or the urther

development o connected car services.

Cellular NetworksCapabilitiesIn existence for more than 25 years, themobile telecommunications industryevolved to deliver a service to customers,which was equivalent to that of a xed linetelephony service, but without the inherentrestrictions on movement that wires imply.In order to meet this top level servicerequirement, two basic principles drovethe design of the mobile telecoms networkarchitecture and technology that remain the

bedrock upon which all mobile telecomsservices are built upon today:

A network should be highly available.The wired part of a cellular networkis designed to incorporate a degree ofredundancy and resilience, so that ina situation where either equipment orconnectivity between network elementsfails, the end user experience is unaffected The customer should be certain that theircalls and their data trafc are secure andwill be routed correctly.

These principles mean that a number ofthe key service factors that are implicitin xed line telecoms services had to be

explicitly replicated for mobile technology.For example, the uniqueness of the end userrequires authentication and authorisationservices for mobile customers that would nothave been needed with a wire, since the wireitself ensured the uniqueness of the end point.

Whilst these basic principles arefundamental to all that has followed in themobile industry today, they can also offer

great value to the application of mobiletechnology to other industries.

The principles underpinningmobile networs

The fundamental principles, which underpinhow mobile networks are implementedtoday, include:

Redundancy, resilience and availability:

The network should be functioning99.999% of the time

Authentication and security:The network and a subscribers deviceestablish a trust relationship, throughencryption algorithms and network-generated challenges to devices, toassure the network that the subscriptionis entitled to service. These principles areimplemented through what is popularlyknown as the SIM Card, but which istechnically referred to as the UniversalIntegrated Circuit Card (UICC) card, andthrough an authentication centre (AuC).Furthermore, a number of mechanismshelp to ensure that the trafc on the

network is secure from hacking andprotect the radio channel. The mostvulnerable aspect, however, is the thirdparty services or applications being run ona device connected to the network (giventhe uncertainty of the service source)

Billing:Billing systems, working closely with theauthentication and security mechanisms

of the operator, are designed to identifyspecic events for which charges are leviedagainst the customers account these arereferred to as billable events

Subscription and device management:Operators are responsible for thecorrect management of their customersubscriptions, so that the customerreceives all services that they are entitledto and equally do not receive (and as aresult, is not charged) for services to whichthey have not subscribed

Customer care and customer support:Operators traditionally offer customersupport via call centres, but areincreasingly deploying online support asa cheaper, more efcient option for boththeir services and their customers devices.

The characteristics o cellular networtechnology

In this section, each generation of mobiletechnology is considered, and characterised,

based on a number of criteria coverage,bandwidth, latency and the spectrumavailability. These network criteria are

important for the following reasons: Coverage services that requirecontinuous connectivity need near-ubiquitous network coverage. However,widespread coverage only comes withtime and maturity of the technology,so whilst some of the older (but lower

bandwidth) technologies available havereached nationwide coverage, newer


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technologies (that deliver broadband datarates) tend to have more limited reach Bandwidth services will need acertain amount of bandwidth to worksuccessfully and to meet customerexpectations. Older technologies tend todeliver lower bandwidths, whereas newertechnologies deliver higher bandwidths,as they generally utilise newer modulationtechniques and additional features, suchas Multi-carrier Bonding and Multi-InputMulti-Output (MIMO) radio techniques

Latency this is a measure of the lengthof time it takes for trafc to traverse thenetwork. This is a critical factor for real-time services, in particular, such as VoIPand video telephony, where a delay ofgreater than 250ms can have a signicantimpact on the consumers perception of thequality of the service they are experiencing.

Later in this document, different use cases,based on these criteria, are mapped on todifferent generations of radio technology.This mapping serves to identify suitability,as well as to highlight gaps between

requirements and what is achievable withcurrent deployments, and hence wherefurther investment is needed and by whom.

Figures provided in the following section oncellular network technologies are sourcedfrom Wireless Intelligence the research armof the GSMA.

What are the ey cellular networtechnologies?

In mobile telecoms, much is made of thegeneration of technology implemented bya network and supported on devices (seeFigure 3).

2G GSM has broad global operator supportand contributes to 70% of global mobileconnections (as of Q3 2012). By contrast, 2GCDMA (1x) networks represent about 5%of the global connections market.

3G networks have brought data speedimprovements from legacy 2G GPRSnetworks in which download speeds werelimited to 140.8 kbps. The introductionof WCDMA networks doubled peakdownlink speeds to 384 kbps, whileupgrades to HSPA improved peakdownlink speeds to 14 Mbps. Mobileinternet services really began to gainmomentum with the wider availabilityof WCDMA/HSPA networks which nowaccount for close to 20% of global mobileconnections (as of Q3 2012). By contrast,3G CDMA (EV-DO) represents 4% ofglobal connections, mostly in NorthernAmerica and East Asia. The 4G LTE market is still in its infancy with

just over 100 commercial LTE networksnow live, covering around 5% of the globalpopulation (in large cities mainly). WirelessIntelligence expects 4G LTE to represent 10%of global connections by 2017.

Figure 3: Typical Mobile Technology Migration ScenariosSource: Wireless Intelligence

2G 3G 4G

LTE

LTE

LTE

LTE

LTE

LTE

LTE

LTE

LTE

LTEWIMAX

WCDMA

WCDMA

WCDMA HSPA

WCDMA HSPA

EV-DO

WCDMA HSPA

EV-DO EV-DO Rev.A/B

TD-SCDMA

WCDMA HSPA

GSM

CDMA2000 1X

GSM

CDMA2000 1X

CDMA2000 1X

CDMA2000 1X

GSMCDMA2000 1X

65% o theglobal maret


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Figure 4: Summary of the Characteristics of Different Network Technologies Based on Evolved GSMCore NetworksSource: GSMA

Why is spectrum so important?

The availability and licensing of spectrumis important in two respects. Firstly, if thereis no spectrum available for the mobiletechnology to use, then the technology cannot

be deployed in any given market. Secondly,the spectrum band in which a technologyis used affects coverage and the cost ofdeployment. If the spectrum allocated for atechnology is at a low frequency, then largercells can be deployed, particularly in ruralareas, resulting in higher coverage levels.

Spectrum for 2G GSM has been identiedand licensed around the world, with afairly high degree of alignment in thespectrum bands used, notably in the900MHz and 1800MHz bands. 3G spectrum bands have been licensedfor some time in both developed anddeveloping countries, notably the2100MHz band for WCDMA/HSPA.However, about 50 developing countriesstill do not have any commercial 3Gnetworks (as of October 2012).2

The deployment of the latest mobiletechnology, Long-Term Evolution (LTE),is dependent upon one of three scenarios:The allocation of IMT-extension spectrum(2500-2600MHz), the re-farming ofexisting 2G/3G spectrum or the releaseof the digital dividend spectrum (700-800MHz). A high level of spectrumfragmentation hinders LTE adoption,reducing the economies of scale availableto LTE device makers. Six frequency bands(700/800/1800/2100/2500/2600MHz)dominate LTE deployments to date and

there could be 38 different LTE spectrumcombinations worldwide in LTE networkdeployments by 2015.3

The current LTE spectrum landscape isshown in Figures 5 and 6.

2

Source: Wireless Intelligence.

3

Source: Wireless Intelligence, Global LTE network forecasts

and assumptions one year on, pu blished in December 2011.

Figure 5: LTE Spectrum LandscapeSource: Wireless Intelligence

Cellular NetworGeneration

MaximumDownlinData Rates Latency

Current Coverage(1 Low 5 High)

2GGPRS 140.8 kbps >500ms

EDGE 473.6 kbps 150-200ms

3GUMTS 384 kbps 200-250ms

HSPA 14.4 Mbps 50-100ms

4GHSPA+ 42.2 Mbps 20-25ms

LTE 173 Mbps 5-10ms

900-1800 MHz2G band used or GSM networks andconsidered or re-arming purposes

2600 MHzIMT extension band to provide capacity or mobile broadband

services. Prime band to deploy LTE networks currently being auctioned

2100 MHz3G band used or WCDMA networks

and considered or rearming purposes

700-800 MHzDigital dividend spectrum being reed up rom analogueTV broadcasters to expand mobile broadband coverage torural areas


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The harmonisation of LTE spectrum bandsglobally: would enable radio component suppliers

and device manufacturers to realise greatereconomies of scale

would lower the cost of embeddingconnectivity for devices aimed at the globalmarket (due to the possibility to use fewerradios), and

would facilitate national andinternational roaming between operators

(given common radio technology).

What does the uture hold?

The mobile industry is in constant and rapidevolution

Rapid deployment of innovative productsand services is essential to the mobileoperator community which faces increasingmarket saturation and intense competition.Operators aim to continuously deploy betterand more efcient cellular networks, whileincreasing coverage and mobile internetspeeds. As described previously, mobilenetwork technologies have evolved rapidly

across the globe, with close to one third ofthe global market choosing to upgrade fromGSM to WCDMA/HSPA to LTE.

LTE-Advanced represents the nexttechnological step in the industry withoperators already starting to deploythis technology considered to bereal 4G standard by the InternationalTelecommunications Union (the ITU). LTE-Advanced will offer downlink bandwidthsof up to 1 gigabit per second and uplinkspeeds of up to 300 Mbps dependent onthe spectrum allocation.

This rapid technological evolution presentsadjacent industries with something ofa quandary: at what level of mobiletechnology should they engage?

However, one characteristic of most mobiletechnologies including LTE-Advanced isthe backwards compatibility of networksand devices. This technological requirementensures that users roaming on newer

technologies will be able to fall back onto legacy networks depending on theiravailable coverage. For instance, a consumerstreaming video on an LTE-enabledsmartphone will fall back on to legacy HSPAor EDGE networks once he/she moves outof the LTE coverage zone, thereby ensuringseamless continuity of service.

Networ evolution is difcult to predict

It is quite difcult to predict how LTEnetworks will be deployed in any specicgeography given that: Network evolution is based upon thecommercial decisions of individual mobile

operators which in turn is dependent onthe core characteristics and needs of theircustomer base Spectrum is licensed at a national levelgenerally for xed periods (3G licenses,for example, have an average lifespan of10-15 years) and the scope and timelineof spectrum auctions and licenses differwidely by country The LTE global market is still in its infancyand since LTE spectrum is fragmentedacross the globe, there remains a highlevel of uncertainty surrounding operatornetwork deployments and migrationsfrom 2G/3G to 4G LTE.

Figure 6: 4G LTE Spectrum Solutions as a % of GlobalLTE ConnectionsSource: Wireless Intelligence

Digital dividend

Spectrum re-arming

IMT-extension

Q4 2016

33%31%

36%

57%38%

5% Q3 2012


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What could 2020 hold or networ evolutionin terms o regional coverage?

Leading network equipment supplierEricsson recently estimated that 3GWCDMA/HSPA networks currently providecoverage to more than half of the worldspopulation. It expects that gure to jumpto 85% in ve years as demand for mobileinternet access increases and smartphones

become increasingly affordable. Ericssonfurther estimates that LTE coverage will

jump from 5% of the world population to50% over the same period (see Figure 7).

While 2G GSM/EDGE has by far the greatestreach, covering more than 85% of the worldspopulation to date, Wireless Intelligenceexpects 2G networks to only account forone third of the global connections market

by 2020, as 3G/4G coverage expands. Theanalyst rm anticipates that 2G networkswill account for an average of 45% ofconnections in both Africa and Asia by 2020.Meanwhile, in Europe and the Americas,3G/4G networks are already widely usedand the migration away from 2G networksis forecast to accelerate with 2G connections

holding on to only 20% of connections inboth regions by 2020 (see Figure 8).

Figure 7: Ericssons Coverage Estimates Source: Ericssons Mobility Report, November 2012

100

80

60

40

20

0

%

populationcoverage

Worldpopulationdistribution

2011

GSM/EDGE WCDMA/HSPA LTE

2017 2011 20112017 2017

>85%

>45%

5%

>90%

85%

50%

Rural

Sub-urban

Urban

Metro

Figure 8: 2G connections as a % of Regional ConnectionsSource: Wireless Intelligence

100%

80%

60%

40%

20%

0%2000 2005 20152010 2020

Arica

Asia

Americas

Europe

Oceania


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Notwithstanding this complexity, thefollowing table (Figure 9) provides a forecastof network technology share of regionalconnections over the next ve years.

By 2017, Wireless Intelligence expects 3Gto account for half of connections in theAmericas (including North and SouthAmerica) and Europe, while 4G will havereached close to one sixth of regionalconnections on average in both regions.Between 2012 and 2017, the share of 3Gnetworks in Asia is set to rise to almost 37%.

Ericsson estimates that Asias 3G WCDMA/HSPA population coverage is higher thanthe global average. It forecasts that 90% ofthe Asian population will be covered by 3GWCDMA/HSPA networks by 2017. Similarly,

LTE coverage is set to reach higher levels (60%)in the region than the global average (50%) by2017. Ericsson expects Asia to account for twothirds of the worlds LTE population coveragein ve years (see Figure 10).

In the US market, as the 4G LTE raceaccelerates, mobile operators are alreadypreparing to shut-down legacy networks.With the vast majority (85% in Q2 2012) ofits connections already on 3G, AT&T hasannounced that it will shut down its GSMnetwork in 2017, allowing it to re-farmspectrum in the 1900MHz band for nextgeneration services. The operator currentlycovers around 45% of the US populationwith LTE and expects to increase that gureto more than 90% by the end of 2014.

Figure 9: Network Technologies as a % of Regional ConnectionsSource: Wireless Intelligence

2G 3G 4G

2012 2017 2012 2017 2012 2017

AFRICA 88.8% 64.9% 11.2% 33.8% - 1.3%

Middle Arica 96.1% 89.6% 3.9% 9.9% - 0.6%

AMERICAS 60.2% 33.9% 36.6% 50.1% 3.3% 16.0%

Northern America

Southern America

28.7%76.8%

9.8%44.8%

62.2%23.2%

54.8%48.0%

9.9%-

35.5%7.2%

ASIA 79.3% 54.9% 19.8% 36.8% 0.9% 8.4%

Eastern Asia 67.8% 40.3% 29.9% 42.5% 2.3% 17.3%

EUROPE 60.0% 32.2% 39.6% 52.3% 0.4% 15.5%

Western Europe 50.8% 22.0% 48.8% 56.7% 0.5% 21.3%

OCEANIA 31.6% 16.2% 66.5% 60.3% 1.9% 23.5%

Australasia 23.7% 9.3% 74.2% 64.1% 2.1% 26.6%

Figure 10: Ericssons Forecasts for Mobile Network Coverage in AsiaSource: Ericssons Forecasts for Mobile Network Coverage in Asia

2011

GSM/EDGE

2017

>85%

>90%

WCDMA/HSPA

2 01 1 2 01 7

>50%

90%100

80

60

40

20

0

%p

opulationcoverage

60%

LTE

2 01 1 2 01 7

1.5%


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Third-placed Sprint Nextel is implementingits Network Vision initiative aimed atconsolidating its network around 3G-CDMAand 4G-LTE, while winding down its iDENpush-to-talk network by Q2 2013, allowing itto free up spectrum in the valuable 800MHz

band. Tier 2 operator, MetroPCS, hopes toeventually move its entire subscriber base toLTE, and plans to start refarming spectrumthat it is currently using for CDMA trafc

by the middle of 2013. Meanwhile, there hasbeen speculation that market-leader VerizonWireless which already covers around 80%

of the US population with LTE could soonstart repurposing CDMA spectrum bands forLTE. However, Verizon executives have beenquoted as saying that the older networkswill remain as they are for a very, very longtime possibly in order to support emergingM2M (machine-to-machine) markets.

In other regions, such as Europe, 2G networkshut-downs are not on operators agendassince 3G/4G still represented less than half ofEuropes mobile connections in 2012 (40%) compared with 73% in the US. Nevertheless,the GSMA expects LTE operators in theregion to refarm their existing 2G spectrumfor 3G/4G services. At present, a quarter ofmobile operators in Europe have launchedLTE networks, while Wireless Intelligenceexpects four out of ve operators in theregion to have launched LTE by 2017.

More broadly, despite the rapid migrationtowards 3G/4G, legacy 2G networks remainessential to preserve the current globalroaming ecosystem. It is a basic roaming

requirement that users can connect to voiceservices when out of 3G/4G coverage zonesand/or when travelling to another country.Roaming represents a substantial source ofrevenue for operators which 2G networkswill help to preserve for some time. Inaddition, mobile operators are likely tocontinue supporting M2M services runningon 2G legacy networks.

Service awareness and Quality o Service what is possible on mobile networs?

The growth of M2M services brings

opportunities for mobile operators to provideconnectivity and value-added services to adiverse range of customers and applications.Some mobile connected services may bevery demanding (e.g. cash-in-transit vehiclesecurity systems incorporating the capabilityto transmit video pictures and urgent alarmsignals), while others may be very tolerant(e.g. periodic reporting of utility meterreadings). Mobile network operators will be

best placed to take advantage of the growingM2M opportunity, if they can: provide tiered quality of service (QoS)

levels to meet service provider and end-

user requirements in the areas of speed,reliability and availability measure delivered service levels

ensure seamless service when devices orservices are roaming charge based on QoS level.

To date, mobile network operators havenot widely or commercially deployed

standardised mechanisms for deliveringdifferent QoS levels on their own networks,and especially while roaming, due totheir complexity and cost, and a lack ofsufcient customer demand. Althoughnot yet quantied, this demand is likelyto grow due to requirements from variousindustry sectors (especially the automotive,health and utilities/smart cities sectors).This increased demand would create theincentive for mobile operators to offer asmall number (e.g. 3-5) of service classes

by investing in tiered QoS capabilities, or

to take advantage of the QoS capabilitiesthat will become available to them through3GPP Release 7 (Policy & Charging Control)network deployments, which are likely to

be introduced by many operators eitherto manage VoIP trafc or to support theintroduction of LTE networks. The Release7 QoS control approach for mobile dataservices is centred around the QoS ClassIdentier (QCI), a parameter that givesnetwork operators full control over the QoSprovided for their offered services for eachof their subscriber groups.

Extending the geographic availability ofservice classes to the roaming environmentwould be a natural next step for thoseroaming partners that are capable ofsupporting this functionality. Manymobile connected services will be offeredinternationally, and in many cases, devicesmay be permanently roaming. Althoughthe Release 7 QoS control approach is fullysupported when roaming, and althoughwholesale charging based on QoS can be


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supported by the existing billing (TAP3)standard with minimal effort, roamingpartners would need to agree inter-operatortariffs (IOTs) per service class, increasing thecomplexity of existing roaming relationships.

In summary, service classes are not yetavailable from mobile networks, but oncethe technical enablers are in place and themarket has evolved to show signicantassociated demand, mobile operators arelikely to start offering service classes andtiered service levels.

What does the SIM oer?

The SIM card has been at the heart ofthe mobile industry for more than 20years, helping to make the GSM family oftechnologies the most secure, ubiquitous andsuccessful communications system in theworld. The SIM card will remain at the heartof the system for the foreseeable future.

The SIM card is the secure custodian of thesubscribers identity. It ensures that trust ismaintained between the customer and themobile telecommunications network.

SIM card technology is evolving to meetthe demands of future mobile servicesand applications. This evolution includesfeatures to enable new use cases, in whichmobile connectivity is embedded into a widerange of devices, machines and vehicles.

Evolution o SIM orm actors

The form factor of the SIM card is evolvingto support new business requirements. Theremovable SIM card form factors4 commonly

in use today will be augmented with new,complementary and standardised formfactors. These include: smaller, pluggable form factors to allowmore exibility in mobile device form

factors, and next generation embedded (or surfacemount) form factors5 that can be solderedinto mobile devices and be remotelymanaged by the network operator.

These new form factors will complement

existing SIM card form factors, rather thanreplacing them; traditional SIM-supporteddevices will continue to work on operatornetworks. The new SIM form factors will

be based on already-standardised SIMform factors and will remain as a physicalentity a physical implementation providesenhanced security. As such, these new SIMform factors will continue to provide theessential trust and security relationshipsnecessary to protect the data provided by allparties in the value chain.

Remote management o the SIM

Todays current generation of SIM cards aregenerally managed as physical entities: theyare physically shipped from the operator tothe customer, they are manually pluggedinto mobile devices and they are manuallyswapped and updated (see Figure 11).

The use of the current generation of SIMcards has, thus far, provided many benetsto the customer, including great exibility.However, the current mechanisms used tosupply and manage SIM cards will need to

evolve to open up new markets, in particularfor services in which mobile connectivityis embedded in a wide range of devices (aconcept known as embedded mobile).

The standardised remote managementtechnologies available today do not facilitatethe remote provisioning or switching ofoperator credentials on the SIM card.But the GSMA, along with a group ofleading mobile operators, is driving thedevelopment and standardisation of anext generation of SIM card technologies

Figure 12: Outcome-BasedSIM Life Cycle Model withRepeat ProvisioningSource: GSMA

4

Dened in ETSI 102 221.

5

Dened in ETSI TS 102 671.

Figure 11: The Linear SIM Life Cycle Model of TodaySource: GSMA

SIMACTIVATION

USUAGEEND

OF LIFEDISTRIBUTIONPERSONALISESELECT MNO

MANUFACTURESIM

PRE-ISSUANCE POST-ISSUANCE

PRE-ISSUANCE

POST-ISSUANCE

MANUFACTURE& ASSEMBLY

SELECTMNO

PERSONALISE

USUAGE

SUBSCRIPTIONEND

OFS

ELECT

/CHANGE

MNO


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to facilitate the remote management of theoperator credentials within the SIM. Thegoal of this initiative is to enable remoteSIM management, helping drive globalmomentum for new, innovative and cost-effective connected devices that will enhancedaily life, while retaining the security andexibility of current SIM card form factors.

Remote management will enable operatorsto securely deliver, update or swap SIMcredentials over the air in devices equippedwith the next generation of embedded SIMs.It will enable SIM cards to be remotelyprovisioned, or swapped out, without anyneed to have physical access to the mobiledevice. This means that next generationSIMs in embedded devices (which by designcannot be removed) can be securely updatedwith operator credentials right up to and,even, after the point of sale. This approachwill also allow the secure re-provisioningof alternative operators during a deviceslifespan (see Figure 12).

SIM Provisioning Use Cases

The GSMA has dened ve primary usecases for the remote-provisioning of nextgeneration SIMs (see Figure 13):

These SIM provisioning use cases areapplicable to the automotive sector. Here aretwo examples of automotive scenarios:

Scenario A: The operators contractualrelationship is with the vehicle manuacturer The vehicle manufacturer managesembedded mobile connectivity

Pre-sale The vehicle manufacturerensures a valid provisioning prole ispresent within the embedded SIM Pre-sale The vehicle manufacturer suppliesembedded SIM identity and over-the-aircredentials to its subscription managerpartners directly or via SIM vendor (see thenext section for additional details) Post sale The vehicle manufacturerprovides the embedded SIM andsubscription manager identities to itschosen mobile operator for vehicle testing

and/or live service The mobile operator remotely provisionsthe embedded SIM and provides service The embedded SIM ecosystem enables thevehicle manufacturer to bulk-switch servingmobile operators for vehicles post-sale.

Sample scenario B: The operators contractualrelationship is with the consumer The vehicle owner is responsiblefor sourcing mobile connectivity for

embedded mobile services Pre-sale The vehicle manufacturerensures a valid provisioning prole ispresent within the embedded SIM At point of sale, the vehicle owner receivesa SIM and the subscription manageridentities from the vehicle dealer

The owner provides their chosen mobileoperator with the SIM and subscriptionmanager identities

The mobile operator remotelyprovisions the embedded SIM andprovides service

The vehicle dealer may facilitate thisprocess. The vehicle owner may change the serving

mobile operator or cancel connectivityduring the lifetime of the vehicle (subjectto contract)

The vehicle may be re-sold and the newowner may obtain service with anothermobile operator.Figure 13: SIM Provisioning Use CasesSource: GSMA

Provisioningo multipleM2Msubscriptions

Provisiono frstsubscriptionwith a newconnecteddevice

Subscriptionchange

Stopsubscription

Transersubscription

An M2M service provider sets-upsubscriptions or a number o connectedM2M devices to start telecommunicationservices with a network operator

A subscriber purchases a new type oconnected device rom a device vendor/distribution channel

A subscriber changes the subscription ora device to stop services with the currentmobile operator and start services with anew mobile operator

A subscriber sells his device and stops thesubscription or services rom the currentmobile operator

A subscriber transers subscriptionbetween devices

1

2

3

4

5


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MNO

Subscription Manager

SIM

Track and tracer Smart meter Trucks and logistics Vehicles Security camera Vending machine

12345678.75

Figure 14: Remote Provisioned SIM: ElementsSource: GSMA

SIM architecture and roles

The architecture for the remotely provisionedSIM is presented in the following diagram(Figure 14), which highlights the new role ofthe subscription manager.

Without a standardised subscription managerarchitecture, each mobile operator wouldhave to use their own proprietary technicalsolutions for the remote personalisationof embedded SIMs. Difculties wouldthen arise when trying to switch a devicewhich contains an embedded SIM between

two operators who had implementedfundamentally different technical solutions.

Developing a standardised subscriptionmanager architecture based upon commonrequirements and with common sharedelements would resolve such issues whilst atthe same time reducing cost and complexity.

A standardised solution will also drive thenecessary economies of scale to ensure thesuccessful deployment of the embedded SIMsolution to the market.

The interfaces and processes needed tomake an embedded SIM work are virtuallyidentical to current SIM personalisationprocesses and interfaces used by mobilenetwork operators. For many MNOs theseinterfaces are currently with SIM vendorsand proprietary to each operator/group.

The subscription manager is responsible forthe secure processes via which an MNO isable to personalise an embedded SIM overthe air (see Figure 15).

Benefts o remotely-provisioned SIMmanagement

The benets of a standardised mechanismfor remote SIM management include: Enables delivery of the operator SIM tooccur independently of the embedded

mobile devices distribution channel Enables the management of the SIMduring the connected products life cycle,which for some M2M products, such asvehicles, could be 10-15 years

Protects network operator security andcustomer privacy Re-uses as many elements as possiblefrom current implementations Provides scale that enables costminimisation.

The technical standard contains sufcientexibility to facilitate numerous businessmodels: It is likely that business models will

be developed through discussions betweennetwork operators and their customers.


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Status

The GSMA, along with a group of leadingmobile operators, has already nalised themarket requirements for the developmentof standardised embedded SIMs and forthe remote management of SIMs. This haspaved the way for the implementation ofa worldwide-embedded SIM standard,reducing fragmentation and driving scalefor connected devices across variousindustries, including automotive, consumerelectronics, healthcare and utilities.

The GSMA, and its partners, plan to showadvanced proof of concepts during 2013,with the rst commercial deploymentslikely to follow in the near future.

Next steps or mobile operators

Mobile operators are seeking to betterunderstand the automotive industrysrequirements with respect to: How in-vehicle services, and theirconnectivity requirements, are evolving How to enable all appropriate connectivityoptions for services.Greater understanding of these two aspects

will facilitate the development of tailoredapproaches and services to support telematicsand infotainment, in line with the underlyingneeds of automakers. Moreover, cross-industry collaboration will be required toovercome some existing ecosystem barriers.Mobile operators are particularly interestedin fostering this joint collaboration in areassuch as: Operational improvements, such as how to

optimise data usage, common requirementsfor services and improving service deliveryfor different types of connectivity New means to foster telematics andinfotainment business development, suchas through joint application programminginterfaces (APIs), apps development andlocation-based services.

The Connected Car Forum enables suchdiscussions to take place, where automakersand mobile operators can identify andcollaborate on joint priorities.

Figure 15: The Elements Involved in Remote SIM ProvisioningSource: GSMA

Next GenerationEmbedded SIM

Functionally-identical to a traditional SIM card At manuacture may have a provisioning profle assigned with secret keys that allows theassociated subscription manager to manage operational profles on the eUICC To be standardised by ETSI Technical Committee Smart Card Project and considered in 3GPP standards The technical standard can accommodate both an initial declaration o the MNO in the eUICC, as wellas the selection o a new MNO later. The implementation will depend upon the commercial agreementbetween the operators and their customers

SubscriptionManager

Manages the embedded SIM by Generating SIM proles in real-time Management and execution o MNO policy Secure routing o proles to embedded SIMMNO Uses subscription manager to manage proles Maximum re-use o existing provisioning interaces and processes


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This chapter considers automakers requirements

or the development o connected car services.

It covers:

The general industry context

Business models

Embedded modules characteristics and cost

orecasts

Dierent connectivity methods or providing

in-vehicle services

Perormance actors or cellular technology

or the delivery o specic services.

This chapter also discusses the inherent trade-

os involved in the dierent requirements and

connectivity options. Finally, it explores the uture

evolution o inotainment, telematics and other

connected car services.

Automakers Connectivity RequirementsThe general automotiveindustry context

Automakers have very different industrialrequirements from mobile networkoperators (see Figure 17). These differenceshelp to explain some of the underlyingchallenges in cooperation.

One of the primary differences is the verydifferent lifecycles for the development ofautomotive products (24-36 months) andthe lifetime of the products (7 to 10 years),compared with the mobile operator lifecyclefor the development of services (average of6 to 12 months) and network development(1 to 3 years, with a desired 7 year minimumnetwork operational lifecycle).

The lifecycle requirements of the automotiveindustry mean it is necessary to: Create durable solutions, which: require few hardware updates (given

the difculty of providing these updatesacross large number of dispersed userswith embedded solutions)

support over-the-air software updatesfor systems and services, in order toensure that the device always functionsappropriately for the duration of thenetwork topology Create interoperable solutions, which canmove across brands and models, as well

as provide economies of scale whereverpossible (even across automakers)

Figure 16: Basic Automotive Industrial RequirementsSource: GSMA

Figure 17: Differences in the Automotive and Operator Industrial LifecyclesSource: GSMA

Regulatorycompliance

Importanceofincreasingcapabilities

forremoteprovisioningof SIM

Needto limithardwareupdates

Seamless connectivity approaches which

canadapt tonetworkevolutions

Durability of automotive solutions

Desiredover-the-airupdates systemsservices

Interoperabilityof systems, servicesovertime

andacross:platforms,applications

GENERAL AUTOMOTIVEINDUSTRY REQUIREMENTS

AUTOMAkER REQUIREMENTS FORCONNECTIVITY PRINCIPLES

Product Planning 2-3yrs

AUTOMOTIVE LIFECYCLE

Lifetime 7-10yrs

Detai

led

plann

ing1yr

Longt

erm

plann

ing3yrs

Opera

tiona

l

lifetim

e7yrs

MOBILE NETWORK OPERATOR REFERENCE LIFECYCLES

Network technology planning

Network product releases 1yr

0 years 5 years 10 years


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CEN: PAN-European eCall operating requirements

CL1Location infomation E-112Minimum set of vehicle dataVoice (112)

Car in incident 1st Level PSAP

CEN: High level application protocols

3GPP:eCall idle mode

3GPP:In-band modem

3GPP:eCall flag

3GPP:In-band modem

CEN:MSD (data)

Standards approved or under final approval vote

Pan-European eCall (112+ in-band modem) Manage multiple connectivity approachesin a exible manner to accommodatepotential changes in user services duringthe lifecycle of the vehicle (changes ofowners, countries of operation, etc.) andenable improved management of theoverall base for telematics monitoringvehicle data (such as remote diagnostics).

Additional important contextual elementsinclude: Specic regulatory aspects affectingthe connectivity solution (such as the

European eCall and roaming requirements see next section) Underlying business models for theautomotive sector.

Examples o upcoming connectivityregulations impacting the automotive sector

eCall

The European Commission is in the processof introducing a pan-European in-vehicleemergency service (eCall)6 regulation inEurope, which will require: All new cars manufactured or distributedin the EU from 2015 to have an eCall

in-vehicle system (with a network accessdevice and UICC)

All Member States to indicate the mostappropriate public safety answering pointto route eCalls and to draw up detailedrules for public mobile network operators. All mobile network operators in Europe tohandle an eCall like any other call to thesingle European emergency number 112(by 31 December 2014)

This regulation will result in wide-scaleusage of connected vehicles in Europe.

Private third party emergency calls, whichare proprietary value-add services (e.g.,Volvo OnCall, GM OnStar, PSA, Fiat,BMW ConnectedDrive), are likely tocontinue to exist.

Many of the standards for eCall are eitherapproved or under nal approval (seeFigure 18).

Figure 18: eCall Standardisation ProcessSource: GSMA

6

eCall Denition from the Pan-European eCall Implementation Guidelines Draft v3.0 (2012, Task Force GUID): In case of a serious accident, the vehicle

systems will automatically initiate a 112 call to the most appropriate Public Safety Answering Point (PSAP), which will establish a voice contact

between the PSAP and the occupants of the vehicle, while, as soon as the connection is established, sending a minimum set of data (MSD) related to the

accident including accurate location, time and direction of the vehicle to the PSAP. eCall can also be triggered manually.


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The European Commission Recommendationon eCall (8 September 2011) has outlined thedifferent requirements and responsibilitiesfor mobile operators, Member States andautomakers (see Figure 19).

ERA-GLONASS (Russia)

Russia has also begun implementing anemergency call service, which buildsupon elements of the European eCallsystem, extending the approach to includeadditional features such as GLONASS GNSSpositioning (Global Navigation Satellite

System) and a back-up data transmissionmechanism using SMS.

The main characteristics of ERA-GLONASS,which different from those of eCall, are: GLONASS GNSS must be supported,but combined GNSS receivers (e.g.

GLONASS/GPS) are acceptable Data transfer mechanisms include in-bandmodem (primary mechanism), SMS (back-up communication channel) and GPRS Echo cancellation and noise reductionrequirements have been dened

ERA-GLONASS calls for vehicles to beable to initiate a test session and be ableto transmit the test results to the back-endsystems. Test mode is intended for testing thefunctionality of the in-vehicle system (IVS).The operation is identical to eCall mode,

but voice calls are forwarded to a dedicatedcall centre, and the mode identier eld inemergency data set is set to test

The IVS can be congured and upgradedremotely The IVS can be pre-installed (terminalinstalled on the automotive assemblyline) or retrotted (the terminal isinstalled at service centres or at dealercentres after vehicle assembled atautomotive assembly line) The terminal shall record accelerationprole before and during the crash. Thecrash prole is transmitted as a separate

block of data

Support for a standardised I/O port andstandardised communication protocol toconnect additional sensors.

The schedule for deployment is: Back-end ERA-GLONASS systems arescheduled to be operational by Q1 2014 The rst deployments, scheduled forOctober 2014, will be targeting thetransportation of dangerous cargo andcollective passenger transportation.

All new passenger vehicles (e.g. automobilesand light vehicles) will be required to havethe ERA-GLONASS in-vehicle system (IVS)installed from January 2015.

SIMRAV (Brazil)

Brazil has been developing legislation since2006/07 to support the SIMRAV anti-theftsystem. A regulation coming into effect by31st January 2013, will give automakers 12months to t the system to all new vehicles.

SIMRAVs objectives are: Reduce vehicle theft and lower vehicleinsurance rates Provide consumers with the opportunityto opt-in during vehicle lifetime for anti-theft services from any service provider.

The approach for SIMRAV is: Mandatory incorporation of anti-theftequipment by auto and motorcyclemanufacturers into all new vehicles(commercial, passenger, motorcycle)

destined for the Brazilian market. SIMRAVwill, therefore, be incorporated into 5 7million new vehicle sales Anti-theft service subscription offered bycertied service providers (i.e by TIVs) Based upon an MVNO approach in whichDenatran (Ministry of Cities, DepartmentNational Transit)/Serpro (The FederalService for Processing of Data) (under anoutsourcing arrangement):

Manage an home location register withdefault proles for inactivated servicesubscriptions

Conduct an over-the-air switchoverbetween the pre-loaded Serpro proleand operator prole when servicesubscription is active.

Figure 19: Regulatory Framework for eCallSource: GSMA

A European Commission Recommendation(8 September 2011) requires operators:

to implement the eCall discriminatory fag in all networks

to route eCalls to the Public Saety Answering Points

to handle eCalls as any other 112/E112 emergency call.

MEMBER STATES

AUTOMAkERS

A European Commission Recommendation(8 September 2011) requires Member States:

To dene emergency call inrastructure to receive the eCalls To communicate the most appropriate public saety answeri ng

point to route eCalls to report to the Commission on the implementation status by 31

March 2012.Common specifcations or Public S aety Answering Point

(PSAPs) within the ramework o the ITS Directive are set to beissued by the end o 2012, which will ensure emergency centres andrescue services are equipped or processing the data transmitted bythe eCall.

Vehicle Type Approval Legislation is set to be issuedby the end o 2012 to ensure that all new cars in 2015will have to be equipped with eCall devices complyingwith agreed European standards (already approved byCEN and ETSI).

MOBILE OPERATORS


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EU Roaming Regulation

A new European Roaming Regulation,adopted in June 2012, introduces thefollowing measures (which are driven bythe consumer handset market): The introduction of structural changes

or structural measures, focused onstimulating competition by making iteasier for alternative operators (e.g.mobile virtual network operators) to enterthe roaming market and offer consumersalternative roaming tariffs

Potential decoupling (unbundling) ofroaming services from domestic servicesto allow for a separate sale of roamingservices (from 2014) Potential wholesale roaming access:All mobile network operators would beobliged to meet all reasonable requests forwholesale roaming access (from July 2012) Reductions in retail and wholesale pricecaps and the extension of these caps toretail data roaming services Review of the implementation in 2015.

The exact implications of the new roamingregulation on automotive services are notevident at this point. However, the pressureto reduce roaming costs in the EU is clear.

Considerations or driver distraction

Driver distraction is an important riskfactor for accidents and the role of mobilephones in this regard has been the subject of

extensive research and regulation. In 2011,the World Health Organization (WHO)7

produced a report on this topic concluding:

It is now evident that if you are using a mobilephone while driving you are approximately fourtimes more likely to be involved in a crash than adriver who is not using a phone. This risk appearsto be similar for both hand-held and hands-freephones, because it is the cognitive distractionthat is an issue, not only the physical distractionassociated with holding the phone. Text messagingappears to have an even more severe impact ondriving behaviour and crash risk.

At an international level, Article 8.6 of theVienna Convention on Road Trafc, 1968,was amended in 2006 to include a ban onthe use of hand-held mobile phones whiledriving and this is reected in many nationalroad rules. In addition, some countries haveimposed extra restrictions on certain groupsof drivers, generally young/inexperiencedor commercial drivers.

In December 2011, the US NationalTransportation Safety Board8 called for anationwide ban on non-emergency driver

use of portable electronic devices (PEDs)while operating a motor vehicle unlessthe devices are designed to support thedriving task. However not all countries areconvinced of the effectiveness of bans and a2012 report for the Swedish National Roadand Transport Research Institute (VTI)9recommended against a general ban on phoneuse, preferring instead driver education,information and technical solutions.

The GSMAs position10 recommends againstactivities that involve drivers taking their

eyes off the road. Both operators andautomakers have been active in efforts topromote compliance with national laws andresponsible mobile phone use by drivers.There are many examples of educationalcampaigns, often aimed at particular driversegments such as inexperienced drivers.

Some phone features, such as voice-operated dialling and other speech-basedapplications, can minimise the physicaldistractions associated with mobile phoneuse. Technical solutions have also beendeveloped, such as software applications

that prevent phone use or disable certainfunctions (for example, texting) when thevehicle is in motion.

Research into driver distraction shows thatdrivers attention and therefore driversperformance depends on a concept ofworkload i.e. the amount of informationone has to process in order to makedecisions. If the workload is too low

7

http://www.who.int/violence_injury_prevention/publications/road_trafc/

distracted_driving/en/index.html

8

http://www.ntsb.gov/news/2011/111213.html

9

http://www.vti.se/

10

http://www.gsma.com/publicpolicy/mobile-and-health/mobile-devices/mobile-phones-and-driving/

Figure 20: Comparing Different Types of Car ConnectivitySource: GSMA

Embedded Tethered Integrated

Modem Embedded Brought-in Brought-in

UICC (SIM) Embedded Embedded/Brought-in Brought-in

Intelligence/Applications Embedded Embedded Brought-in

User Interace Vehicle HMI Vehicle HMI Projection o phone interace on vehicle displayOR

Remains directly on phone


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for example, when driving on an emptyroad, attention wanders affecting drivingperformance, on the other hand, during

bad weather, or on a busy or unknownintersection, the workload is too high.Reliable workload models that are basedon processing car data, as well as maps andtrafc information, can be used as an inputto intelligently regulate ow of information,HMI layout and other features making itsafer and more rewarding to use connecteddevices and services. Greater cooperation

between automakers and the mobile

communications industry could ensuremore effective solutions and potentially thedevelopment of a driver mode analogousto airplane mode.

In February 2012, the US National HighwayTrafc Safety Administration11 (NHTSA)issued voluntary guidelines to encourageautomakers to limit the distraction risk forin-vehicle electronic devices installed at timeof manufacture that require visual or manualoperation by drivers. These guidelines could

be examined by the Connected Car Forum todetermine their relevance in other markets.

What are the connectivity optionsor automaers?

A number of options exist to connect avehicle, including: Embedded: Both the connectivity (modemand UICC) and intelligence is built

directly into the vehicle Tethered: Connectivity is providedthrough external modems (via wired,Bluetooth or WiFi connections and/orUICCs), while the intelligence remainsembedded in the vehicle Integrated: Connectivity is basedupon integration between the vehicleand the owners handset, in which all

communication modules, UICC, andintelligence remains strictly on the phone.The human machine interface (HMI)generally remains in the vehicle (butnot always).

Each of these different connectivity optionsrelies upon different mechanisms for linking

the car to cellular technology. The primaryoptions are summarised in Figure 21.

The utilisation of these differentconnectivity options differs across thevarious in-car services:

Integrated solutions tend to be usedfor higher bandwidth and personalisedapps (such as on-demand music andsocial networking) Tethered solutions typically focus onconnected navigation and internet-basedinfotainment features Embedded solutions focus on vehicle-centric, high-reliability and high-availability apps (such as eCall and

breakdown call, or bCall, services).Embedded solutions covering a broadrange of services have generally beenlimited to premium vehicles, with somenotable exceptions:

Volume brand manufacturers, suchas BMW, General Motors, Peugeot,Renault, and Roewe, offer services

based on embedded solutions in entry

models and up Where region-specic regulations existfor embedded solutions (such as eCallin Europe).

CONNECTIVITY OPTIONS

Tethered Connectivity (intelligence in the car)

External modem and SIM

Users phone (as a modem)

USBBT

DUN/PAN

BTSPP

BTHFP

Wi

Embedded modem(external SIM)

BT SAP SIM slot USB key

Integrated

AllEmbedded

UsersPhone

(everything

onphonee

xceptHMI)

Figure 21: Different Means to Enable Car Conn ectivity:Source: SBD 2011

11

http://www.distraction.gov/


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Figure 22: Strengths, Weaknesses, Opportunities and Threats for EmbeddedConnectivity SolutionsSource: GSMA

These three connectivity solutions are notmutually exclusive and can be used intandem as appropriate for the proposedapplications. Moreover, these solutionsare likely to continue to co-exist in future.A tandem approach might be used, forexample, when the technology employedfor the embedded system is likely to beinappropriate for newer-generation orhigher bandwidth services.

The use of different connectivity solutionsalso reects automakers desire todifferentiate between the: Costs for services that they have a directinterest in (such as remote diagnostics)

Costs for large bandwidth, frequent useservices (such as infotainment).

If it was possible to differentiate betweenthese services through split billing,automakers would be likely to dramaticallyreduce the employment of tethered solutions.

Embedded solutions

All of the connectivity (module and SIM)and the intelligence are built into the car.

Figure 22 shows the strengths, weaknesses,opportunities and threats related toembedded solutions.

Certain services, such as security and safety-related services, are particularly appropriatefor embedded solutions. These services need to

be highly reliable, always-on and seamlessfor the end-user (for example, a primary riskof tethered solutions is the driver may forget to

bring and connect his phone).

Seamless user experience Does not require user set-up Good communications perormance, using single antenna Robust and reliable With an appropriate mounting, suitable or bothsaety and security-related services (both crash-resistent and attack-resistent) Avoidance o incompatability, interoperability ortethering issues Automaker can speciy the internal modem andantenna according to the needs o the services to beoered The manuacturer can guarantee that the service andassociated HMI is appropriate or use in-vehicle (andcontrol the services availability)

Regulatory changes ocused on increasing saetyand security are resulting in mandatory regionaldeployments: Opportunity or additional servicesto be oered on the selected technology The growing use o web-based apps mayreduce the technological perormance criteriaor certain services, allowing embeddedsolutions to provide competitive solutions Increased operator provision o diversiedbilling options, as well as more direct controlover the provisioning process is likely toimprove the user experience and reliability

Operators could develop specic oersor connected car services

With existing solutions, changing operatorsduring the lietime o the vehicle involvesprohibitive costs and logistics diculties Signicant hardware costs up-ront Limited technology evolution possible, withoutphysical intervention Currently dicult to split bills so that communicationcosts are divided between dierent services anddierent beneciaries

Dicult to agree upon roaming context inwhich users do not suer bill-shock related tohidden services

Regional network evolution uncertain, so there isa risk that hardware investments will be outdatedduring the vehicles lietime Depending on the billing model, the automaker and/or the operators relationship with the nal clientmay not be evident

Embedded Solutions

STRENGTHS

OPPORTUNITIES

WEAkNESSES

THREATS


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Tethered solutions

Tethered solutions rely on the intelligenceof the application running in the car, whilethe users SIM, phone or USB key is used toenable connectivity. There are multiple waysto enable tethering, such as:

An embedded modem, which employsthe users existing SIM (via the BluetoothSAP prole12 or a SIM SLOT) solely forconnectivity An external modem, which utilises theusers phone (via USB cables, Bluetoothproles (DUN/PAN, SPP/HFP) or WiFi)or USB modem, tethering for both theconnectivity and the modem.13

Figure 23 shows the strengths, weaknesses,opportunities and threats related totethered solutions, in which the modem andintelligence is embedded in the vehicle.

A tethered approach using an embeddedmodem is often employed for user-basedservices (such as infotainment), as it enablesthe user to directly manage and pay the costsof the used services. It remains an unreliablesolution for safety and security solutions,

given the need for the user to activate theirphone or insert their SIM.

Figure 24 shows the strengths, weaknesses,opportunities and threats related to tetheredsolutions, which combine an external modemwith intelligence embedded in the vehicle.

As Figure 24 shows, tethered solutions, usingan external modem, have the benet that: less costly in-vehicle hardware is required

the external modem is more likely to beup-to-date (given the higher replacementrate of handsets).

This approach, however, requires thatthe necessary protocols are universalacross devices. Furthermore, it remainsinappropriate for safety and securityservices, as no guarantee exists that thedriver will use this solution consistently.

12

BT SAP (SIM Access Prole) ~ A Bluetooth prole that makesa temporary copy of the SIM credentials from one device to

another (e.g. copy the SIM from a handset to an embedded

modem in a car).

13

BT DUN (Dial-Up Networking) ~ A Bluetooth prole that allows

a connected device to make a data connection via the phone.

BT PAN (Personal Area Networking) ~ A Bluetooth prole

that allows one or more connected devices to share the phones

connection to the internet.

BT SPP (Serial Port Prole) ~ A solution that uses compatibleapps (on the phone and in the car) to bypass tethering

restrictions. Data is downloaded from the Internet to the app onthe phone, from where it is side-loaded to the car using SPP.

BT HFP (Hands Free Prole) ~ This prole is used to enable a

voice call that the car can then use to transfer very small amounts

of data using in-band modem technology (data-over-voice).USB cable ~ A wired solution that connects the phone to a USB

connection in the car.

WiFi ~ The car is able to connect to the internet over WiFi if the

phone is put into a portable hotspot mode.

Figure 23: Strengths, Weaknesses, Opportunities and Threats for Tethered Connectivity Solutions

(embedded modem with intelligence in the car)Source: GSMA

Robust communication using vehicle antenna and modem,speciced according to automaker requirements Ongoing communication charges are directlyconnected to the end-users SIM Simpler deployment as no new operatornegotiations or roaming and billing required For BT SAP solutions: Little impact on thebattery lie o the users phone (BT SAP placesthe device into the power-save mode) For SIM Slot solutions: Reliable connectionto SIM (not relying on wireless link) Appropriateness o in-car services and (availability othe services) is easy to control through connectivitysolutions when the intelligence remains on the vehicle

Operators could develop special telematics &inotainment oers or dedicated car services

Limited cost savings or vehicle hardware comparedwith ully embedded solution As with embedded solutions, limited technologyevolution possible, without physical intervention For BT SAP solutions: Protocol is not ully supported,even in new phones (some operators may block BT SAPor security reasons) For BT SAP solutions: Relies on the users phone being in vehicleand activated, so it is not a reliable solution (in general) and, inparticular, or saety and security related services SIM Slot: Requires drivers/users to have an additionalSIM or their vehicle Not appropriate or security and saety applications(robustness and reliability cannot be guaranteed)

SIM Slot: Risk o thet, or owner non-payment Regional network evolution uncertain, so there is a riskthat hardware investments will be outdated during thevehicle lietime

Tethered Solutions:Embedded Modem(BT SAP or SIM Slot)

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Figure 24: Strengths, Weaknesses, Opportunities and Threats for Tethered Connectivity Solutions(external modem and intelligence in the car)Source: GSMA

Up-ront hardware costs in vehicle are reduced Communication costs are directly tied to user Allows users connectivity solutions to ollow their handset deviceevolution (high replacement rate); keeping pace with networktechnology upgrades (avoiding obsolescence and, thereore, likely toprovide aster perormance as available) Direct links (USB cables, or sticks) also avoid the diculties o havingto use wireless protocols When USB modems are deployed, data and voice (on the userphone) can be used in parallel and is likely to result in higher datatranser rates Users mobile phone can be charged whilst in use In an emergency where a second radio is not available, the USBmodem could provide ailover and support to the car systems Appropriateness o in-car services and (availability o the services) iseasy to control through connectivity solutions when the intelligenceremains on the vehicle

Additional unctionality, such as apps and mapsetc., can be embedded into a USB modem, therebyaddressing download and usability issues Operators could develop specic solutions (such asdedicated USB connections) or connected car services

Protocols are not seamless or tethering (user experience canbe sacriced) Appropriate proles or dierent protocols are not universal across devices.Furthermore, sotware in telematics control unit must be developed tointerace with dierent types o mobiles phones The communications module is not likely to be automotive grade,reducing reliability and perormance (particularly critical or saetyand security) Antenna perormance likely to be worse than embedded solutions Associated errors are likely t o be linked to automaker, even whenrelated to the mobile device Tethered solutions can be incompatible with SMS-based services Operators are not able to create specic oers or connected carservices run through phones Not appropriate or security and saety applications (robustness andreliability cannot be guaranteed)

Threats Durability o the connection interace could be a problem or longterm solutions Some operators discourage, charge extra or prevent the use omobile phones or tethering purposes (due to concerns o abuseregarding all-inclusive data plans) Dierences in charges between voice and data components o userplans can cause bill shock or vehicle services

Tethered:External Modem

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Integrated connectivity solutions

The phone and the vehicle form an integratedsolution with the communications module,SIM, and intelligence all provided by thephone. This solution generally relies on theHMI being provided by the vehicle (althoughit sometimes remains on the phone).

Figure 25 shows the strengths, weaknesses,opportunities and threats related tointegrated connectivity solutions.

The smartphone integration approach isparticularly appropriate for user-based

services, such as infotainment or access to

trafc information and external navigation.Moreover, the technologies are likely toremain up-to-date and there is a directallocation of service costs to the end user.However, it can be a risky solution given thelimited control the automakers have on theapplications and services used. It is also anunreliable solution for safety and securitysolutions, given the need for the user toactivate their phone.

Dealing with the trade-os o the dierentconnectivity choices

In practice, most automakers are likely to takea hybrid approach to connectivity rather thana one-size-ts-all solution. This means thatthey may, for example, adopt an embeddedsolution on their high-end models, a tetheredapproach on their entry-level vehicles, whilstoffering an integrated smartphone productacross all their products.

The different approaches can be used ina complementary fashion in the samevehicles. A number of vehicle manufacturerslaunched smartphone integrationsolutions in 2012, with the main focus

being on providing the driver with access

to internet radio, streaming music andsocial networking apps running on theirsmartphones. This trend will continue intothe future, as manufacturers take advantageof the computing power and personalisationcapabilities inherent in a solution that usesthe customers smartphone.

In parallel, however, most automakerswill continue to keep some intelligence

and applications in the car, and thisis where they face the choice betweenembedded and brought-in connectivity. Asdescribed elsewhere in this white paper,the management of data costs can be asignicant barrier to using an embeddedSIM for features with unpredictable datarequirements and/or usage. Concern aboutthis issue has resulted in increased interestin tethered solutions.

Automakers around the world have alreadyexperimented with various tethered solutions:

Audi supports BT SAP BMW and Mercedes use BT DUN and/or PAN Toyota and Ford use BT SPP and HFPrespectively in the USA Honda has adopted a USB dongle in Japan.These solutions are characterised by the prosand cons outlined in Figures 23 and 24, butthere is some agreement across automakersthat the following two tethered solutionswill be the most important going forward:

Bluetooth DUN/PAN: Bluetooth has ahigh penetration across most mobile phonemarket segments. Many experts recommendthe use of PAN, but automakers willcontinue to support DUN to ensure thathighest levels of compatibility WiFi: Most smartphones are now equippedwith WiFi, and many consumers are alreadyvery familiar with the process for connectingtheir portable devices to a WiFi network.

Figure 25: Strengths, Weaknesses, Opportunities and Threats for Smartphone Int egrationConnectivity Solutions (in which only the HMI runs on the car, everything else is on the phone)Source: GSMA

Connectivity costs are completely tied to driver(more likey to understand data plan implications) Allows or car connectivity to take advantage o themost recent device modules (i.e. the drivers latesthandset) and relevant network technology evolutions Allows or diversied inotainment options tailored tothe driver Virtually no hardware start-up costs or services

As cloud-based services becomes a primary receptacleor personalised inotainment content, integration canprovide an appropriate means to access this content

A seamless service is not guaranteed, as dierentproles and protocols are not universally available Uncertainty o user experience Not appropriate or security and saety applications Not appropriate or vehicle-based systems given thelack o guaranteed consistency in usage Driver distraction issues are dicult to manage orinfuence when external devices are used in the vehicle

Regulations on driver distraction could limit the abilityto use phones or in-motion servicesSmartphone

Integration

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Figure 26: Spectrum Availability for Connected Car ServicesSource: GSMA

The prioritisation of these two technologiesfor tethering is an important rst step bythe automakers, but they now face thechallenge of optimising network usabilityfor their customers.

The obstacles to successul tethering

To be successful, tethering for in-vehicleconnectivity requires seamless servicedelivery across multiple devices. Thenecessary proles and protocols, therefore,need to be available on all devices.

To address this issue the Connected Car

Forum is assessing the recommendationof a single set of proles and protocolsfor tethering to reduce complexity andharmonise a standard approach to tetheringto remove the existing obstacles.

A further potential obstacle

gsma mautomotive technologyroadmap v2

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